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Understanding how injuries are classified under the workmen compensation policy is essential for every employee and employer in India. This classification plays a vital role in deciding the compensation amount in case of workplace injuries. A labour insurance policy helps safeguard workers by offering financial protection during such difficult times.
Let us explain what is workmen compensation policy and the difference between scheduled and non-scheduled injuries under this policy.
What Is a Claim under Workmen Compensation Policy?
A workmen compensation claim arises when an employee suffers an injury while on the job. The injury must be work-related and must happen during work hours.
The Employees’ Compensation Act, 1923, provides the legal framework for handling such claims in India. This Act mandates employers to compensate employees for injuries or disabilities and their families in case of death caused by workplace accidents. The law ensures that employees do not bear the financial burden alone after a workplace injury.
Compensation helps the employee cover medical expenses, loss of income, and other financial hardships caused by the accident. Securing a workmen compensation policy from a reputed insurer like TATA AIG helps in quick claim processing and settlement.
Classification of Injuries under the Workmen Compensation Act
In India, the Employees’ Compensation Act divides injuries into two main categories — scheduled and non-scheduled injuries. These categories help determine how much compensation the injured worker is eligible to receive.
What Are Scheduled Injuries under Workmen Compensation Policy?
Scheduled injuries are listed in Schedule I of the Employees’ Compensation Act, which is divided into two parts.
- Part I covers permanent total disablement.
- Part II covers permanent partial disablement.
These schedules assign a fixed percentage of compensation to each injury, which is used to calculate compensation.
Examples: Loss of both hands or feet, loss of eyesight in both eyes, amputation of an arm above the elbow, etc.
How Is Compensation for Scheduled Injuries Calculated?
The Act provides a clear formula to calculate the compensation amount. The calculation considers three main factors:
- The worker’s age
- The worker’s monthly wages
- The percentage of disability
For scheduled injuries, the compensation is calculated based on the percentage listed in the schedule.
What Are Non-Scheduled Injuries under Workmen Compensation Policy?
Non-scheduled injuries are those not listed in Schedule I of the Act. They can be physical (internal) or psychological and are often more complex to assess. Since there is no fixed percentage listed, the compensation for non-scheduled injuries depends on medical assessment and legal evaluation.
Such injuries may lead to permanent or temporary disablement that is not covered in the schedule but still impacts the worker’s earning capacity.
Examples: Internal injuries not listed in the schedule, long-term psychological trauma, damage to internal organs due to an accident, etc.
These injuries require a medical professional to evaluate the loss of earning capacity. The compensation amount is then determined based on that assessment.
How Is Compensation for Non-Scheduled Injuries Calculated?
The law requires a qualified medical practitioner to examine the injured worker for non-scheduled injuries under the workmen compensation policy. The doctor assesses the degree of disability and its effect on the worker’s ability to earn. Based on this evaluation, a compensation percentage is given, and payment is determined in a similar way to that for scheduled injuries.
In cases of non-scheduled injuries, strong medical evidence is needed to determine the outcome. The medical certificate issued by the doctor should clearly state the nature of the injury and its effect on the earning ability of the employee. If the employee does not submit proper documentation, the claim may be delayed or even rejected.
Importance of Injury Distinction in Workmen Compensation Policy
Understanding the difference between scheduled and non-scheduled injuries under the workmen compensation policy helps employees know what to expect during the claim process. This classification also ensures a fair and uniform process for handling injury claims. It avoids confusion and promotes timely compensation to injured workers.
For employers, this distinction provides a clear guide to fulfilling their legal obligations without unnecessary disputes.
Role of Employers in Ensuring Fair Compensation to Employees
Employers must keep themselves updated with the compensation rules and maintain proper labour insurance policy coverage. In case of failure to offer appropriate compensation or insurance, there may be legal punishments and monetary losses.
Employers should do the following:
- Report workplace injuries immediately
- Maintain accident records
- Cooperate with medical assessments
- Ensure timely compensation payouts
By taking such measures, employers can uphold their responsibilities under the law and protect their workforce effectively.
Conclusion
Injuries in the workplace can happen anytime, and both employees and employers need to be prepared. Both employees and employers should know the difference between scheduled and non-scheduled injuries. It will help them file the right claim under the workmen compensation policy. While scheduled injuries follow a fixed payout structure, non-scheduled ones need proper medical evaluation and legal clarity.
A labour insurance policy ensures that workers receive timely support without facing financial hardship. Employers who comply with these rules meet their legal duties and also build a safer and more trusted work environment.
